Marathon Petroleum: Analysts’ Recommendations before Q1

Analysts’ ratings for Marathon Petroleum

In this part, we’ll discuss analysts’ ratings for Marathon Petroleum (MPC). The company is expected to post its first-quarter earnings on May 8.

Marathon Petroleum: Analysts’ Recommendations before Q1

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Among the 17 analysts covering Marathon Petroleum in April, all of the analysts recommended a “buy” or “strong buy” rating. None of the analysts have assigned a “hold,” “sell,” or “strong sell” rating on the stock.

Recently, Goldman Sachs cut its target price on Marathon Petroleum stock from $86 to $84. Raymond James lowered its target price on the stock from $90 to $85. JPMorgan Chase cut its target price from $93 to $89. Marathon Petroleum’s mean target price is $89 per share, which implies a 49% gain from the current level.

Why the “buy” ratings?

Marathon Petroleum’s earnings, after the acquisition of Andeavor, are expected to rise due to high refining capacities, widespread midstream assets, and its vast marketing and retail network. The anticipated synergies are expected to increase the earnings. The company’s capex activities could fuel the company’s earnings growth. Analysts expect Marathon Petroleum’s earnings to grow sharply in the second and third quarters. Marathon Petroleum’s EPS is expected to be $2.0 and $2.2 in the second and third quarters, respectively. In the first quarter, the company’s earnings are expected to be $0.1.

Peers’ ratings

Phillips 66 (PSX) and Valero Energy (VLO) have been rated as a “buy” by 61% and 74% of the analysts, respectively. Delek US Holdings (DK), HollyFrontier (HFC), and PBF Energy (PBF) have been rated as a “buy” by 47%, 18%, and 44% of the analysts, respectively.